Tesla has unexpectedly terminated a contract with MPW Industrial Services at Gigafactory Texas, leaving 82 employees jobless almost overnight. A WARN notice filed with the Texas Workforce Commission confirmed the decision, which took effect September 1. For the workers—technicians, supervisors, and managers—the end came with little warning, falling under the “unforeseen business circumstances” exemption that lets employers sidestep the usual 60-day notice period.
Another Sudden Shift at Giga Texas
The move highlights a trend of unpredictability at Tesla’s largest factory and global headquarters. Giga Texas is the production hub for the Model Y and Cybertruck, as well as a key site for battery output. Yet it has become as famous for instability as it is for scale. Earlier this year, Tesla cut nearly 2,700 direct employees at the site as part of a wider restructuring. Before that, it terminated another contract with Trigo Quality Solutions, which resulted in 50 inspectors losing their jobs.
The sudden nature of these decisions fuels uncertainty among workers and suppliers alike. Even as Tesla hypes new product momentum—like the fact that the Model Y Performance is finally coming back after Nürburgring testing—stories of layoffs and abrupt contract cuts send a very different message about stability behind the scenes.
Why It Matters Beyond Texas
For the 82 MPW employees, the fight goes beyond a contract on paper. It’s their livelihoods suddenly thrown into uncertainty, with no time to prepare or adjust. The impact doesn’t stop there, though. Contractors play a vital role in Tesla’s daily operations, handling everything from cleaning and maintenance to quality checks. If suppliers begin to see Tesla as an unpredictable partner, they’ll think twice about signing long-term deals, or they’ll build in higher prices to cover the risk.
The move also lands in the middle of Tesla’s ongoing legal and financial turbulence. The company is already dealing with the fallout from a Florida jury’s $243 million Autopilot verdict, which has sparked a wave of similar lawsuits. Questions about safety, labor practices, and trust in Tesla’s promises are piling up at the same time. And while many customers are still drawn to advanced tech such as Full Self-Driving, offered for $8,000, critics argue that these flashy features distract from the company’s instability in other areas.
The Bigger Picture
Tesla’s layoffs and contract cancellations might be explained as efficiency moves in a cooling EV market. But they also risk undermining the company’s reputation as an employer and partner. Giga Texas is supposed to be Tesla’s showcase of scale and innovation—yet the headlines keep circling back to instability. Investors want growth, regulators want accountability, and workers want security. Right now, Tesla is struggling to deliver all three.
My Final Word
Eighty-two lost jobs won’t move Tesla’s balance sheet. But they will ripple through its contractor network and its relationship with the Austin community. Abrupt decisions like this might save money in the short term, yet they erode trust in the long run. For a company already under legal fire and public scrutiny, Tesla isn’t only under pressure to keep building cars at scale; it also has to show it can deliver some stability along the way.
